Problem 13-4A (Static) Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were Inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 10,000 Accounts payable 8,400 Accrued wages payable 33,700 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets Common stock 2,650 153,300 $ 240,200 Total liabilities and equity Retained earnings $ 17,500 3,200 3,300 63,400 90,000 62,800 $ 240,200 Sales CABOT CORPORATION Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 448,600 297,250 151,350 98,600 4,100 48,650 19,598 $ 29,052 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover, (5) days' sales in Inventory, (6) debt-to-equity ratio, (7) times Interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on equity. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Numerator: Days' Sales in Inventory. Denominator: Days = Days' Sales in Inventory = Days' Sales in Inventory days < Req 4 Req 6 >